Why are Cloud Technologies getting Maximum Investment?

Cloud technologies continue to get significant amounts of investment from organizations in India and Europe, followed the IoT, according to an EY report.  64% of organisations in India and Europe invested in cloud technologies in the last two years, followed by 51% in the Internet of Things, according to Tech Horizon: Leadership perspectives on technology and transformation, a multi-country and multi-industry EY report.  43% of organisations in India and Europe stated that artificial intelligence will get almost as much investment as a cloud over the next two years.

EY’s study states that in two years’ time, 82% of organisations in India and Europe are likely to make good progress in their digital transformations or will have fully embedded it across the business.

“With the COVID-19 pandemic, digital transformation programs become more important than ever. This is the ideal time for organizations to drive programs like digitizing customer interactions and supply chain, digitally enabling operating models & processes, and developing innovation capabilities, products, and services.  Such programmes will not only help organisations overcome the crisis, but the ones that become digitally powered and connected during this crisis will be the winners coming out of it.”

--Monesh Dange, Partner & National Leader, Advisory Markets, EY India

The EY Tech Horizon report surveyed 500 large corporations and 70 startups in nine sectors during the year 2019, consumer products and retail, education, energy, financial services, health and life sciences, hospitality, industrial, technology, media and entertainment, and telecoms and transportation and logistics.  The goal of the survey was to determine where organisations are on their transformation journey and how they use technology to enable it.

Powering innovation by leveraging data and being agile (76% of organisations in India and Europe are leveraging data and analytics in order to speed up their ability to innovate while deploying agile methodologies).  In the survey, organisations identified as leaders are advanced on their journey toward transformation, are generating significant financial value from technology innovations, and are making efforts to build a transformative culture.

When it comes to start-ups in India and Europe on their digital transformation journeys, start-ups appear less advanced than their corporate counterparts – with 75% only at the planning stages of their transformation.  But it is essential to remember that these companies – less than 5 years old – are coming from a more sophisticated base and have less need to transform.

The fact that 63% of start-ups expect to be making incremental changes to their business in two years’ time shows that transformation is encoded in their constitution.  While organisations in India and Europe understand that partnerships are a fundamental part of modern business, a core priority for the next 12 months is forging innovation partnerships. 78% of respondents have stated that they have won a significant customer contract through an innovation partnership.

There is a reason why the investors are focusing on cloud technologies. In today's world of large data pools requiring data analytics and  management, cloud technologies are becoming very important.  along with the cloud technologies, analytics  tools such as AI and their applications in IoT also become automatically important.  Hence, we can see why  there is a rising interest in  these technologies.

"Maintaining one's own on premise data center is going to be more expensive. Earlier people did that but now with the problems only cloud providers can operate during the lockdown. Companies with on premise data centers are facing challenges in maintaining the up time. This is going to force CIOs to look into cloud adoption and more cloud-based ERPs. This will also motivate CIOs in enabling as many applications that they have on premise to the cloud."

--Maitrey Modha, CTO, AMEA & ANZ

“The collaboration with IBM will help us accelerate the development of cloud-based applications for our customers and build multi cloud data management solutions on the industry-leading hybrid platform.”

--Pawan Sharma, President & Global Head, Strategic Initiatives, Tech Mahindra

With cloud technologies becoming more important in the near future, the cloud migration is going to be a major focus for the organisations.  The channel community needs to  be more adaptive to these emerging technologies to stay relevant in the market. There is a need for the channels to acquire growing knowhow in these emerging techs.